William Eichler 17 March 2016

Welsh councils need to improve financial management, says auditor

Auditor voices concerns around the financial management and governance of Welsh councils, despite noting improvements in the delivery of end of year accounts.

The Auditor General for Wales has published a new report which identifies an improvement since 2013-14 in the timeliness of production of audited accounts.

Entitled Financial Management and Governance in Local Councils 2014-15, the report shows the number of completed audits had increased to 96% by 30 September 2015.

This was an improvement on the previous financial year - 94% - and is in line with moves from the Welsh government to encourage greater transparency by public bodies.

The number of councils with qualified audit opinions has, however, increased by 3%, from 85 in 2013-14 to 113.

The auditor was particularly alarmed at how many councils were receiving qualified opinions for the first time.

The report shows 62 of the 113 councils qualified in 2014-15 had not received a qualified audit opinion between 2011-12 and 2013-14.

This, the report says, could be avoided if councils put adequate and effective financial management and governance arrangements in place.

The Auditor General also found that an ‘unacceptably high’ number of councils - 95 - have received qualified audit opinions for two or more of the last four financial years. Many were penalised for problems previously flagged.

New audit arrangements for town and community councils for the 2016-17 audit have also been outlined, including examining the councils' system for managing payroll and adopting a Code of Conduct to ensure effective governance.

Auditor General for Wales, Huw Vaughan Thomas said: ‘Given the progress made last year by community and town councils in submitting timely accounts the results for this year are met with much disappointment.

‘A number of councils who have previously submitted their accounts on time and to standard have failed to maintain their previous standards and it is unacceptable that so many councils have allowed standards to fall.’

‘I would strongly encourage councils to make a commitment to addressing the common issues and weaknesses highlighted in today's report and work closely with auditors to prepare future accounts to an acceptable standard,’ he advised.

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director Children’s Partnerships and Sufficiency

North Yorkshire Council
£100,545 to £111,533 plus relocation support  
North Yorkshire is England’s largest county and a beautiful, vibrant place to live and work. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Chief Executive – Corporate & Communities

South Oxfordshire and Vale of White Horse district councils
£146,697
As Deputy Chief Executive – Corporate & Communities, you will guide cultural transition, manage competing priorities Oxfordshire
Recuriter: South Oxfordshire and Vale of White Horse district councils

Residential Support Worker - Development Programme

Durham County Council
£26,403 - £28,598
Residential Support Workers – Temporary 12 Month development opportunity Salary
Recuriter: Durham County Council

Domestic Assistant

Durham County Council
£24,796 - £25,185 pro rata p.a
If you are someone who takes pride in creating clean, safe, and welcoming environment and enjoy making a difference in people’s daily lives through at Durham
Recuriter: Durham County Council

Cleaning Assistant

Durham County Council
Grade 1 £24,796 p.a. pro rata to hours worked (£12.85 per hour)
Are you looking for work that fits around your schedule and lifestyle? A permanent post is available at The Grove Primary School, Consett
Recuriter: Durham County Council
Linkedin Banner